USDCAD Poised for Bullish Reversal Amid Major Releases

FXOpen

The US Dollar (USD) extended upside movement against the Canadian Dollar (CAD) on Monday, increasing the price of USDCAD to more than 1.3050 following the release of some key economic news. The technical bias remains bullish in the long run because of a higher high in the recent upside rally on daily and higher timeframes.

Technical Analysis

As of this writing, the pair is being traded near 1.3055. A support may be noted around 1.2923, the intraday low of yesterday ahead of 1.2900, the psychological number and then 1.2831, the swing low of the last major downside move.

4

On the upside, the pair is likely to face a hurdle near 1.3313, the horizontal resistance area ahead of 1.3639, another major horizontal resistance and then 1.4000, a key psychological number. The technical bias will remain bullish as long as the 1.2831 support area is intact.

Canada CPI

The Consumer Price Index (CPI) for Canada rose 1.4% in the 12 months to February, after increasing 2.0% in January. Excluding gasoline, the CPI rose 1.9% year over year in February, following a 2.0% increase the previous month. Gasoline prices were down 13.1% year over year in February, contributing the most to the overall deceleration in consumer prices. The gasoline index had increased 2.1% on a year-over-year basis in January. On a monthly basis, gasoline prices were down 6.9% in February 2016, while they had increased 9.4% in February 2015.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels could be a good strategy in short to medium term if we get a valid bullish reversal candle on the daily chart.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Market Analysis: AUD/USD and NZD/USD Set Sights on Additional Upside The US Dollar Is Weakening Following Inflation Data Dollar Adjusts After the Publication of Inflation Data in the US Market Analysis: EUR/USD Sees Green as USD/JPY Gains Bullish Traction GBP/USD Analysis: Pound Recovers After the Bank of England Decision

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: S&P500, US Dollar, Gold Price, PEP Stocks

Get he latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. Read the latest news

Commodities

The Price of Silver Has Reached Its Highest Level in Over Three Years

As indicated by the XAG/USD chart today, the intraday price of silver reached $29.84 per ounce yesterday, while the previous yearly high on 12 April was $29.79. The last time this price was seen was in February

What Is the Wolfe Wave, and How Can You Trade It?
Trader’s Tools

What Is the Wolfe Wave, and How Can You Trade It?

The Wolfe Waves is a powerful chart pattern recognised for analysing potential price reversals. Named after Bill Wolfe, who developed this formation through extensive trading practice, Wolfe Waves provide traders with a structured approach to anticipate market movements. In this

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.